Slone Infosystems Limited is an IT hardware solutions Company, engaged in selling and renting of IT Equipment, renting IT equipment, and in providing IT Service Solutions and services like managing cloud servers, AMC, servicing of IT equipment to the corporates. Slone Infosystems IPO is a fixed price issue of Rs 11.06 crores. The issue is entirely a fresh issue of 14 lakh shares.
IPO opens
May 3, 2024
IPO Closes
May 7, 2024
IPO Size (Rs.)
₹11.06 Cr
Breakup
Fresh issue 1,400,000 shares
Face Value:
₹ 10
IPO Price in Rs :
₹79 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Jawa Capital Services Private Limited i
Registrar
Kfin
Market maker
Aftertrade Share Broking
About Slone Infosystems Limited:
In the year 1999, Mr. Rajesh Srichand Khanna, started business of IT Hardware solutions, under his Sole Proprietorship M/s SAM Computers which was later absorbed into Slone Infosystems Private Limited on March 1, 2023.
They are an IT hardware solutions Company, engaged in selling and renting of IT Equipment, and in providing IT Service Solutions in India. They deal in selling and renting of IT equipment like laptops, desktops, servers, work stations and also provide IT solution services like managing cloud servers, servicing of IT equipment to the corporates.
They provide custom made solutions to clients for their IT requirements. They procure IT equipment for clients based on the requirement of the client and then either sell or rent the IT equipment to our clients based on their requirement. They provide flexibility and advantage to acquire the requisite equipment that our client needs to maximize their productivity without compromising their IT budget.
In addition, they also sell the used IT equipments to clients as per their requirements. Their Business operates in segments, viz.:
Sale of Laptop, Computer & Computer Peripherals
Sale of other IT related productsIT Service solutions; and
Rental Services
Promoters are Mr. Rajesh Srichand Khanna, Mrs. Manisha Rajesh Khanna and Mr. Mohit Rajesh Khanna.
Financials: Slone Infosystems Limited
Particulars/ Rs Lacs
9m Dec 2023
2022-23
2021-22
2020-21
Revenue
3,434.86
3,077.40
2,659.14
1,157.44
Profit After Tax
284.72
74.66
38.31
27.54
Share Capital
386.9
184.55
228.7
189.61
Net Worth
1,187.51
210.49
228.7
189.61
Earnings Per Share
13.58
4.05
NA
NA
Net Asset Value
30.69
11.41
NA
NA
Total Borrowings
642.66
681.53
921.15
726.1
Post issue Share Capital
526.9
FV
10.0
IPO price
79.0
EPS Fy23
1.4
PE Fy23
55.8
EPS Fy24 (annualized)
7.2
PE Fy24 (annualized)
11.0
Market cap in Lacs
4,163
Market cap / Sales
1.35
Slone Infosystems IPO: Salient Points
The Net Proceeds are proposed to be utilized in the manner set forth below for the objectives of the IPO:
S. No.
Particulars
Amount in Rs. Lakh
1.
Capital Expenditure towards purchase of Laptops, Desktops, SSD and RAM.
500.76
2.
Repayment of Loan
392.12
3.
General Corporate Purpose
128.77
4.
To meet expenses related to the Issue
84.35
Total
1,106.00
Revenue Break-up from clients for 9 months period ended December 31, 2023
S. No.
Party Name
Sale amount in Rs. Lakhs
Sale in %
1.
Silicon Rental Solutions Limited
2,110.44
61.94
2.
Mangal Compusolution Limited
577.44
16.95
3.
Niyura Technologies Pvt Limited
369.33
10.84
4.
Rox Hi-Tech Limited
145.00
4.26
5.
Alinea Healthcare Private Limited
57.90
1.70
6.
Computer Depot
44.82
1.32
7.
Efcom Infotech Pvt Ltd
24.11
0.71
8.
Rajguru Solutions Pvt Ltd
20.40
0.60
9.
Cemtrex Technologies Pvt Ltd
17.98
0.53
10.
Mnworld Enterprise Pvt Limited
15.00
0.44
Total
3,382.42
99.29
As on December 31, 2023, they have total amount of outstanding borrowings of Rs. 392.12 Lakhs, from Canara Bank.
The breakup of the revenue generated from various segments for the stub period ended December 31, 2023 and for the financial years ended March 31, 2023, March 31, 2022 and March 31, 2021, is:
S. No.
Particulars
31-Dec-2023
31-Mar-2023
31-Mar-2022
31-Mar-2021
1.
Sale of Laptop, Computer & Computer Peripherals
2,731.91
2,659.04
2,313.23
949.09
2.
Sale of other products (viz. Oxymeter, Infrared Thermometer, Sanitizers and Face Masks)
–
–
–
1.26
3.
Revenue from Installations & IT Consulting and SupportServices
511.86
–
–
–
a.
Installation Charges
309.18
–
–
–
b.
IT Consulting Services
26.00
–
–
–
c.
Annual AMC Charges
176.68
–
–
–
4
Revenue from Rental Services
163.29
363.10
265.56
149.86
a.
Storage or Server Hire Charges
130.35
80.79
35.85
–
b.
Desktop/Laptop Hire Charges
32.94
282.31
229.71
149.86
Total
3,407.06
3,022.14
2,578.79
1,100.21
As per management, AMC services, installation and rental has increased their revenue and profits for 9M-FY24.
In earlier years this new segment vs the Trading of IT hardware was in ratio of 10: 90. This shall increase to to 25:75 .
It has received certain Letter of Interests for such services and expects to see a rising demand in the installation/rental segments.
Peers:
Company
CMP (₹)
Revenue(₹cr)
Net Profit(₹ cr)
NPM %
PE
Macp/sales
RONW
Slone Infosystems
79
30.2
0.7
2.5%
55(11)
1.4
35.47%
Brisk Technovision
142
18.3
1.8
10.1%
18.9
1.55
38.62%
Benchmark Computer Solutions
56
31.9
2.0
6.1%
18.5
1.2
15.20%
Slone Infosystems IPOis being offered at a PE of 55.8 x (FY23 earnings) 11x ( 2024 annualized earning) .
I intend to apply in Slone Infosystems IPO subject to availability of funds purely for listing gains if any. Overall it looks just average and further being small in siz, I would have avoided it if there were other issues opening on same date. It margins are likely to expand due to change in product mix towards rental, AMC and Installation services.
GMP as reported on social media has been Rs.65.
This is the 1st mandate from Jawa Capital
SME IPO are much more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
